It is the rare individual who today buys a home outside of a development. Almost all houses and units of property are a part of a planned community. As such, almost all houses and units of property are governed by a homeowners association (HOA). In fact, it is estimated by the American Homeowners Resource Center (AHRC) that 50 million Americans are members of HOAs. But what exactly does this mean?

A developer creates an HOA before he sells any unit in a new development. With the HOA, he is able to formulate a list of covenants, conditions and restrictions (CC&Rs). These rules are written into the deed, so no homeowner can contest them after moving in. More often than not, the CC&Rs deal with maintenance, exterior upkeep and community behavior.

There are many benefits of HOAs. For example, an HOA often creates a degree of conformity. For someone looking for a community in which certain values and terms are upheld, an HOA thus fosters an ideal situation. However, there are also a number of perceived disadvantages to living in an HOA-governed community. Many believe that an HOA is undemocratic and that it takes away the rights of the individual by forcing him or her to adhere to the community’s CC&Rs. An HOA can also lead to higher taxes and financial risk if the developer is less than forthright.

If you are buying a home, you should be aware before you sign any papers of whether your new house is in an HOA community. If it is, you should research it, so as to best understand if this HOA is serving the homeowners well. In Texas, you have many resources at your fingertips. There are a number of organizations, such as the Texas Homeowners for HOA Reform, Inc, working to ensure you are not hoodwinked by an HOA. Take advantage of them. Learn before you sign, and you’ll be certain to enter a community with the individual’s rights in mind.